01—Abstract
Summary
Summary of the 10-K filed January 31, 2019. Cited figures are marked; the original filing is the authoritative source.
Comcast Corporation's 2018 10-K filing highlights a year of significant growth and strategic expansion, most notably the acquisition of Sky in the fourth quarter.
This acquisition positions Comcast as a truly global media and technology company, with operations spanning the U.S., Europe, and Asia. The company's core Cable Communications segment demonstrated continued strength, driven by increases in high-speed internet and business services revenue, even as video and voice revenues saw declines. NBCUniversal's segments also performed well, bolstered by major events like the PyeongChang Olympics and the Super Bowl, though Filmed Entertainment experienced a revenue dip.
Financially, Comcast reported substantial revenue growth, largely attributable to the inclusion of Sky's results for the final quarter of the year and the strong performance of its core Cable Communications and NBCUniversal segments. The company also continued its commitment to shareholder returns through dividends and share repurchases, though it paused repurchases in 2019 to focus on debt reduction following the Sky acquisition. Investors should note the ongoing trend of declining video subscribers, offset by growth in high-speed internet, and the increasing importance of international operations with the integration of Sky.
02—Key points
Key Highlights
- Acquisition of Sky in Q4 2018, expanding Comcast's global reach.
- Cable Communications segment revenue increased by 3.9% to $55.1 billion, driven by high-speed internet and business services.
- NBCUniversal segment revenue grew by 8.9% to $35.8 billion, aided by broadcasts of major sporting events.
- Total consolidated revenue reached $94.5 billion.
- Comcast declared total dividends of $3.5 billion in 2018 and announced a 10% increase in its quarterly dividend.
- The company paused its share repurchase program in 2019 to accelerate debt reduction related to the Sky acquisition.
- Despite growth, video and voice revenues in the Cable Communications segment continued to decline, reflecting industry trends.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2018filed January 31, 2019Financial Statements
FY2018 against FY2017
| Line item | FY2018FY2017 | Change |
|---|---|---|
| Revenue | $94.51B$85.03B | +11.1% |
| Operating Expenses | $75.50B$67.01B | +12.7% |
| Operating Income | $19.01B$18.02B | +5.5% |
| Interest Expense | $3.54B$3.09B | +14.8% |
| Net Income | $11.73B$22.73B | −48.4% |
| EPS (Basic) | $2.56$4.83 | −47.0% |
| EPS (Diluted) | $2.53$4.75 | −46.7% |
| Shares Outstanding (Basic) | 4.58B4.71B | −2.6% |
| Shares Outstanding (Diluted) | 4.64B4.79B | −3.1% |
05—Questions
Frequently Asked Questions
What was the most significant strategic development for Comcast in 2018?
The most significant strategic development was the acquisition of Sky in the fourth quarter of 2018. This acquisition transformed Comcast into a global media and technology company with operations in the U.S. and Europe.
How did the Cable Communications segment perform?
The Cable Communications segment showed solid performance with a 3.9% revenue increase to $55.1 billion. This growth was primarily driven by increases in high-speed internet, business services, and advertising revenue. However, video and voice revenues experienced a decline, a trend consistent with industry pressures.
What impact did the Sky acquisition have on Comcast's financials?
The Sky acquisition significantly increased Comcast's consolidated revenue and assets. Sky contributed $4.6 billion in revenue and $692 million in Adjusted EBITDA for the period from October 9, 2018, to December 31, 2018. The transaction also led to a substantial increase in Comcast's total debt.
How did NBCUniversal perform in 2018?
NBCUniversal's total revenue increased by 8.9% to $35.8 billion, boosted by its broadcasts of the 2018 PyeongChang Olympics and the 2018 Super Bowl. The Cable Networks and Broadcast Television segments saw notable revenue growth.
06—Continue